Inflation occurs primarily through the government printing money, redistributing losses among all holders of U.S. dollars, treasuries, or bonds, effectively reducing their purchasing power. While individuals may still hold the same nominal amount in their accounts, the value it represents diminishes as inflation rises, impacting everyone similarly, including foreign entities like China. This process funds governmental expenditures, including wars, and is framed as a socialization of financial losses. The creation of money, often equated with counterfeiting by critics, is sanctioned as a necessary tool, raising concerns about sustainability and long-term economic effects.

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